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Seafire AB
Quarterly Report • Apr 24, 2025
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Quarterly Report
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Interim report January 1 – March 31, 2025
Markets remain cautious, improved gross margin
Net sales decreased by 5 percent to SEK 207 (219) million, while adjusted EBITA was SEK 6 (6) million in Q1. The quarter showed further volatility, with substantial fluctuations both between subsidiaries and months. Half of the subsidiaries improved their profit levels. Concluded initiatives focusing on gross margin and cost-effectiveness counteracted the negative development in net sales.
Q1 2025
- Net sales amounted to SEK 207 (219) million, -5 percent compared with the same period in 2024, of which organic growth was -5 percent
- Adjusted EBITA amounted to SEK 6 (6) million, corresponding to a margin of 3 (3) percent
- EBITA was SEK 6 (5) million, corresponding to a margin of 3 (2) percent
- Operating profit/loss (EBIT) amounted to SEK 0 (-1) million
- Basic and diluted earnings per share amounted to SEK -0.17 (-0.12)
- Cash flow from operating activities was SEK -22 (-1) million, affected by a tax deferral repayment of SEK -14 (-1) million.
Significant events during and after the end of the quarter
On March 31, Seafire's CFO Jacob Persson announced that he intends to leave the company for another role outside the group in a different industry. Jacob Persson will leave his position during the third quarter and the recruitment of a his successor has been initiated.
FINANCIAL SUMMARY
| Q1 2025 |
Q1 2024 |
R12 2025 |
Full year 2024 |
|
|---|---|---|---|---|
| Net sales, SEK million | 207 | 219 | 893 | 905 |
| Bruttomarginal1 | 48% | 46% | 45% | 45% |
| Operating expenses, proportion of net sales1 | 43% | 41% | 39% | 38% |
| EBITA, SEK million1 | 6 | 5 | 43 | 42 |
| EBITA-marginal1 | 3% | 2% | 5% | 5% |
| Adjusted EBITA, SEK million1 | 6 | 6 | 42 | 42 |
| Adjusted EBITA margin1 | 3% | 3% | 5% | 5% |
| Operating profit (EBIT), SEK million | 0 | -1 | -104 | -105 |
| Basic and diluted earnings per share, SEK | -0.17 | -0.12 | -3.16 | -3.12 |
| Cash flow from operating activities, SEK million | -22 | -1 | 24 | 45 |
| Net debt/adjusted EBITDA pro forma R12, times | 3.3 | 2.8 | 3.3 | 3.0 |
1) Alternative performance measures. See Note 8 for reconciliation with financial reports in accordance with IFRS.
Footnote: The top photograph shows pumice, which is sold by Seafire's subsidiary, Bara Mineraler. Pumice improves conditions for plants in both the agricultural sector and sustainable green urban environments. Pumice moderates and stabilizes the harsh conditions of growing sites, making cultivation possible.
See 1
THE CEO'S COMMENTS ON Q1
Net sales during Q1 amounted to SEK 207 (219) million, a decrease of 5 percent (all organic). The year got off to a cautious start with a January characterized by low levels of activity among our subsidiaries' customers. EBITA for the quarter amounted to SEK 6 (5) million, and adjusted EBITA to SEK 6 (6) million. The weak demand was offset by an improvement in gross margin and good cost control in what is a modest quarter from a profit perspective. There is still considerable variation in performance among the subsidiaries, with half of the companies improving their operating profit. Cash flow amounted to SEK -22 million, affected by a build-up of inventory ahead of the peak season and the payment of a tax deferral.
Net sales among the Industrial companies was down 5 percent on the previous year, with DOFAB, Kenpo Sandwich and Färg-In being particularly hit by the weak construction market. However, these companies are stabilizing and seeing some increase in activity levels among customers. Bara Mineraler and Åkerstedts saw positive development in Q1 net sales, compared with a weak comparative quarter. The industrial companies' gross margin of 46% was unchanged compared with the previous year.
Net sales among the Product companies fell by 4%, driven entirely by Ludafarm, which is facing weak markets in both farming and industrial vehicle cameras. Other Product companies increased their net sales, particularly Opo Scandinavia, which continues to grow strongly (+14% this quarter). The Product companies' gross margin increased by 4 percentage points to 51%. This was largely due to implemented measures, as well as a change in business mix.
Operating expenses in the subsidiaries were somewhat lower than the previous year, and it is pleasing to note that concluded measures offset general cost increases. EBITA of SEK 6 (6) million in a seasonally modest quarter means that we saw our operating profit stabilize for the second quarter in a row, despite continuing weak markets.
Continued focus on improving gross margin
Gross margin improved by two percentage points in Q1. Eight of twelve subsidiaries reported an improvement in their gross margin during the quarter. Focused efforts on pricing and procurement have been initiated, and we are closely monitoring developments. The effects from measures are expected to become visible gradually throughout the year.
Seasonal increase in working capital
At the end of the quarter, the Group's "core working capital"* totaled SEK 232 million, compared with SEK 256 million in the same quarter of 2024 and SEK 221 million at year-end. Given the seasonal pattern with the peak season falling in Q2 for a number of major subsidiaries (including Nordbutiker and Bara Mineraler), development was satisfactory. Our ambition is to continue to reduce
Gross margin improved by two percentage points in Q1. Eight of twelve subsidiaries improved their gross margin during the quarter. Focus is on pricing and procurement, and we are closely monitoring development"
our working capital supported by a stronger focus and some new tools in our toolbox.
Cash flow for the quarter was SEK -22 million, of which payment of a tax deferral was SEK 14 million. The Group's net debt including tax deferrals amounted to SEK 308 (330) million. We are meeting the requirements set out in our bank agreements, keeping up with repayment plans, and have a good dialog with our lenders. However, debt in the Group is still too high. A focus on improving profitability and cash flow, combined with a proactive approach to working capital and other components of our balance sheet, is expected to reduce the Group's net debt and Net Debt/EBITDA ratio going forward.
Outlook for 2025
We operate in what remains an uncertain world. Seafire's subsidiaries, which have considerable exposure to Sweden, consumers and construction, have been hit by weak demand in recent years. Our baseline heading into 2025 was an improved market, but with uncertain timing and magnitude. Although we have seen an increase in activity among customers, caution still prevails and closing deals remains a slow process. There are also no signs of any recovery in order intake as yet. Seafire's subsidiaries have very limited exposure to the USA, but uncertainty around tariffs is likely to impact consumer confidence. We are focusing on what we can influence, but are dependent on market conditions. I would like to thank the Group's employees for their hard work and commitment and cautiously look forward to what this will mean for Seafire's financial development when demand increases again. I would also like to thank our shareholders for your support and patience with Seafire.
Daniel Repfennig President and CEO
THE GROUP'S PERFORMANCE
Net sales
Q1
During the quarter, net sales decreased by 5 percent to SEK 207 million, compared with SEK 219 million for the same period in the previous year. As no acquisitions have been made since Q1 2023, the decline in net sales was entirely organic. The negative development is mainly attributable to weak demand in Ludafarm and DOFAB.
Gross margin
Q1
The gross margin amounted to 48 (46) percent during the quarter. The higher gross margin is attributable to concluded measures such as price adjustments and purchasing negotiations, and a change in business mix.
Profit
Q1
The Group's operating profit/loss (EBIT) amounted to SEK 0 (-1) million during the quarter. The subsidiaries showed mixed development, with six of twelve companies increasing their EBIT. Operating profit before amortization attributable to acquired surplus values (EBITA) amounted to SEK 6 (5) million. Items affecting comparability affected the profit, while the comparative figure was affected in the amount of SEK -1 million. Profit after tax amounted to SEK -7 (-5) million.
Net financial items and tax
Q1
Net financial items amounted to SEK -8 (-5) million during the quarter. Interest and finance costs amounted to SEK -6 (-6) million, currency fluctuations amounted to SEK -3 (-1) million, and interest and finance income was SEK 1 (2) million. Tax for the period amounted to SEK 2 (1) million.
Summary of financial performance measures
| Q1 | Q1 | R12 | Full | |
|---|---|---|---|---|
| year | ||||
| SEK million | 2025 | 2024 | 2025 | 2024 |
| Net sales | 207 | 219 | 893 | 905 |
| EBITDA | 13 | 12 | 72 | 71 |
| Adjusted EBITDA | 13 | 13 | 71 | 71 |
| EBITA | 6 | 5 | 43 | 42 |
| Adjusted EBITA | 6 | 6 | 42 | 42 |
| EBIT | 0 | -1 | -104 | -105 |
Effect of items affecting comparability on the income statement
| Q1 | Q1 | R12 | Full year |
|
|---|---|---|---|---|
| SEK million | 2025 | 2024 | 2025 | 2024 |
| Other income (contingent consideration remeasurement) | - | - | 7 | 7 |
| Merchandise (impairment of inventory) | - | - | -1 | -1 |
| Other external expenses (restructuring) | - | -1 | -2 | -3 |
| Other operating expenses (disposal of machinery and equipment) |
- | - | -3 | -3 |
| Effect on EBITDA & EBITA | - | -1 | 1 | 0 |
Financial performance SEK million
Cash flow
Q1
Cash flow from operating activities, including changes in working capital, amounted to SEK -22 (-1) million, of which a tax deferral of SEK 14 (1) million was repaid. Cash flow from investing activities amounted to SEK -1 million (-2), as a result of investments in property, plant and equipment. Cash flow from financing activities amounted to SEK -14 (6) million, with the decrease due to the repayment of bank loans. Total cash flow for the quarter amounted to SEK -37 (3) million.
Investments
Q1
Total cash flow from investing activities during the quarter amounted to SEK -1 million (-2), which is attributable to investments in property, plant and equipment.
Financing
Interest-bearing liabilities at the end of the period amounted to SEK 222 (243) million, and including lease liabilities to SEK 257 (276) million. Of the liabilities, SEK 222 (243) million were liabilities to credit institutions and SEK 35 (33) million were lease liabilities. Contingent consideration amounted to SEK 0 (12) million, of which contingent consideration due within 12 months amounted to SEK 0 (5) million. The Group's net debt, as defined in order to calculate the bank loan's covenant, amounted to SEK 237 (232) million, while net debt/adjusted EBITDA R12 pro forma amounted to 3.3x (2.8x). Seafire was in compliance with the terms of its current financing agreement at the end of the quarter. The existing bank financing agreement expires in Q1 2026 and a dialogue is ongoing with the financing bank regarding an extension of the agreement.
Tax deferral amounted to SEK 71 (91) million, which must be repaid by the end of September 2027. SEK 18 million must be repaid during the remaining part of 2025, of which approximately SEK 13 million will occur during the third quarter. Cash and cash equivalents amounted to SEK 20 (49) million at the end of the period.
Adjusted net debt, including leases, all contingent consideration and tax deferrals, amounted to SEK 308 (330) million, which gives an adjusted net debt/adjusted EBITDA R12 pro forma of 4.3x (4.0x).
Net debt, Net debt/Adjusted EBITDA pro forma R12
| Full | |||
|---|---|---|---|
| Q1 | Q1 | year | |
| SEK million | 2025 | 2024 | 2024 |
| Interest-bearing liabilities | 222 | 243 | 233 |
| Lease liabilities | 35 | 33 | 39 |
| Contingent consideration due within 12 months | - | 5 | - |
| Less: cash and cash equivalents | -20 | -49 | -57 |
| Net debt | 237 | 232 | 215 |
| Adjusted EBITDA R12 | 71 | 82 | 71 |
| Net debt/Adjusted EBITDA pro forma R12, times | 3.3 | 2.8 | 3.0 |
Adjusted net debt including deferral from the Swedish Tax Agency and all contingent consideration, adjusted net debt/adjusted EBITDA pro forma R12
| Full | |||
|---|---|---|---|
| Q1 | Q1 | year | |
| SEK million | 2025 | 2024 | 2024 |
| Net debt | 237 | 232 | 215 |
| Outstanding deferral from the Swedish Tax Agency and contingent consideration due for payment after 12 months |
71 | 98 | 85 |
| Adjusted net debt | 308 | 330 | 300 |
| Adjusted EBITDA R12 | 71 | 82 | 71 |
| Adjusted net debt/Adjusted EBITDA pro forma R12, times | 4.3 | 4.0 | 4.2 |
BUSINESS AREAS
Industrial components
The Industrial components business area offers products and solutions to companies within a number of market niches – paints, fans, construction materials and production of sheet metal components for customers within a wide range of sectors. The business area includes Bara Mineraler, Borö-Pannan, DOFAB, Färg-In, Kenpo Sandwich, Pexymek, Thor Ahlgren and Åkerstedts. For more information about the business area, see Note 4.
| SEK million | Q1 2025 |
Q1 2024 |
R12 2025 |
Full year 2024 |
|---|---|---|---|---|
| Net sales | 137 | 144 | 574 | 582 |
| Gross profit | 63 | 66 | 261 | 264 |
| Gross margin, % | 46% | 46% | 45% | 45% |
| Rörelsekostnader1 | -53 | -55 | -206 | -208 |
| Proportion of net sales, % | 39% | 38% | 36% | 36% |
| EBITA1 | 6 | 7 | 38 | 39 |
| EBITA margin, % | 5% | 5% | 7% | 7% |
1 Earnings exclude the management fee payable to the Parent Company, which is distributed between the subsidiaries based on net sales.
Q1
During the quarter, net sales fell by 5 percent to SEK 137 million, compared with SEK 144 million for the same quarter in the previous year. Bara Mineraler, Åkerstedts and Pexymek increased their Q1 net sales compared with the same period in 2024, while other companies saw a decrease in sales. DOFAB, which supplies doors and windows for refurbishments and new builds, had a challenging quarter, with net sales down 37%. Borö-Pannan, which had a very weak 2024, saw a minor decrease in Q1 net sales (-8%), and we are seeing signs of stabilization. Demand is at a low level historically.
The gross margin was stable and amounted to 46 (46) percent.
During the quarter, operating profit before amortization and impairment attributable to acquired surplus values (EBITA) amounted to SEK 6 (7) million, which corresponds to an EBITA margin of 5 (5) percent.
Products
The Products business area offers products and solutions to companies within a number of market niches – lightweight electric vehicles, software sales, eyewear and monitoring equipment for customers within a wide range of sectors. The business area includes Ludafarm, Nordbutiker, OPO Scandinavia and SolidEngineer. For more information about the business area, see Note 4.
| Q1 | Q1 | R12 | Full year | |
|---|---|---|---|---|
| SEK million | 2025 | 20241 | 2025 | 20241 |
| Net sales | 70 | 73 | 315 | 318 |
| Gross profit | 36 | 34 | 142 | 140 |
| Gross margin, % | 51% | 47% | 45% | 44% |
| Rörelsekostnader1 | -30 | -30 | -120 | -121 |
| Proportion of net sales, % | 43% | 42% | 38% | 38% |
| EBITA1 | 4 | 2 | 17 | 15 |
| EBITA margin, % | 6% | 3% | 5% | 5% |
1 Earnings exclude the management fee payable to the Parent Company, which is distributed between the subsidiaries based on net sales.
Q1
During the quarter, net sales fell by 4% to SEK 70 million, compared with SEK 73 million during the same quarter of the previous year. OPO Scandinavia saw positive growth in net sales compared with the corresponding quarter in the previous year, while Ludafarm had a negative impact on development in the segment. Other companies saw stable growth in net sales compared with Q1 2024.
The gross margin increased to 51 percent compared with 47 percent in the same period the previous year. The change is attributable to concluded measures and a change in business mix.
During the quarter, operating profit before amortization and impairment attributable to acquired surplus values, EBITA, amounted to SEK 4 (2) million, which corresponds to an EBITA margin of 6 (3) percent. The higher gross margin, combined with cost restraint, is driving the improvement in financial performance.
OTHER INFORMATION
Auditor's review
This report has not been subject to review by the auditors.
Significant events during the quarter
On March 31, Seafire's CFO Jacob Persson announced his intention to leave the company for another role outside the group in a different industry. Jacob Persson will leave his position during the third quarter and the recruitment of a replacement has begun.
Significant events after the end of the quarter
No significant events have occurred after the end of the quarter.
Related party transactions
There were no transactions between Seafire and its related parties that had a material impact on the Company's position or earnings during the quarter.
Share information
At the end of the reporting period, the number of shares in the Company was 42,846,569. All shares are of the same type and afford the same voting rights. As of March 31, 2025, the largest shareholders were Creades with approx. 19% of the shares, Protector Forsikring with approx. 17%, and Movestic Livsförsäkring with approx. 14%.
Since May 11, 2023, the Company's shares have been listed on Nasdaq Stockholm and are traded under the ticker 'SEAF'. Before this date, the shares had been listed on Nasdaq First North Growth Market since July 25, 2019. The smallest trading unit is one (1) share. The closing price of the share on March 31, 2025 was SEK 5.02 per share, which corresponds to a market value of approximately SEK 215 million.
About Seafire
Seafire is a company group founded in 2016 with the aim of creating growth through the acquisition of profitable companies and developing these through active and long-term ownership.
Seafire creates value by being an active owner with a decentralized operational model and independent subsidiaries. Longterm strategies are based on development of the business model, broadening of the market and service and product development, and are executed alongside new initiatives within sales and marketing. This boosts the growth and profitability of the acquired companies.
Seafire always acquires a majority of the shares in any company.
Seafire operates in two business segments: Industrial components and Products. During the period, the Group had eight subsidiaries within Industrial components and four subsidiaries operating within Products. At the end of the period, the Group had a total of 297 employees, of whom 69 were women. For more information about Seafire's subsidiaries, visit www.seafireab.com.
Financial calendar
| April 24, 2025 | 15:00 |
|---|---|
| August 21, 2025 | 08:00 |
| November 6, 2025 | 08:00 |
| February 20, 2026 | 08:00 |
Contact details
Daniel Repfennig Chief Executive Officer +46 (0)72 200 89 41 [email protected]
Jacob Persson CFO +46 (0)70 864 07 52 [email protected]
Seafire AB (publ) Mäster Samuelsgatan 9, 111 44 Stockholm Corporate identity number 556540-7615 www.seafireab.com
DECLARATION BY THE BOARD OF DIRECTORS
The Board of Directors and CEO hereby declare that this interim report gives a true and fair view of the Group's operations, financial position and performance, and describes the material risks and uncertainties facing the Group.
Stockholm, April 24, 2025
Anders Hillerborg
Chairman of the Board
Board member
Sonny Mirborn Marcus Söderberg Stina Wollenius Board member
Board member
Daniel Repfennig Chief Executive Officer
CONDENSED CONSOLIDATED INCOME STATEMENT
| SEK million | Q1 2025 |
Q1 2024 |
R12 2025 |
Full year 2024 |
|---|---|---|---|---|
| Operating income | ||||
| Net sales | 207 | 219 | 893 | 905 |
| Other income | 3 | 3 | 21 | 21 |
| Total operating income | 210 | 222 | 914 | 926 |
| Change in work in progress | 4 | -12 | -7 | -23 |
| Merchandise | -112 | -107 | -481 | -476 |
| Other external expenses | -33 | -33 | -129 | -129 |
| Personnel costs | -56 | -58 | -217 | -219 |
| Other operating expenses | - | - | -8 | -8 |
| Depreciation, amortization and impairment | -13 | -13 | -176 | -176 |
| Total operating expenses | -210 | -223 | -1,018 | -1,031 |
| Operating profit/loss | 0 | -1 | -104 | -105 |
| Finance income | 0 | 1 | 6 | 7 |
| Finance costs | -9 | -6 | -35 | -32 |
| Profit/loss before tax | -9 | -6 | -133 | -130 |
| Taxes | 2 | 1 | -3 | -4 |
| Profit/loss for the period | -7 | -5 | -136 | -134 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Q1 | Q1 | R12 | Full year | |
|---|---|---|---|---|
| SEK million | 2025 | 2024 | 2025 | 2024 |
| Profit/loss for the period | -7 | -5 | -136 | -134 |
| Other comprehensive income | ||||
| Items that may be subsequently reclassified to profit or loss | ||||
| Translation differences | - | - | - | - |
| Other comprehensive income after tax | - | - | - | - |
| Comprehensive income for the period | -7 | -5 | -136 | -134 |
| Comprehensive income for the period attributable to: | ||||
| Parent Company shareholders | -7 | -5 | -136 | -134 |
EARNINGS PER SHARE
| Q1 | Q1 | R12 | Full year | |
|---|---|---|---|---|
| SEK million | 2025 | 2024 | 2025 | 2024 |
| Basic earnings per share, SEK | -0.17 | -0.12 | -3.16 | -3.12 |
| Average number of shares before dilution1 | 42,847 | 42,847 | 42,847 | 42,847 |
| Diluted earnings per share, SEK | -0.17 | -0.12 | -3.16 | -3.12 |
| Average number of shares after dilution1 | 43,749 | 43,749 | 43,749 | 43,749 |
1) Average number of shares in thousands.
CONDENSED CONSOLIDATED BALANCE SHEET
| SEK million | Mar 31 | Mar 31 | Dec 31 |
|---|---|---|---|
| 2025 | 2024 | 2024 | |
| Non-current assets | |||
| Goodwill | 536 | 658 | 536 |
| Other intangible assets | 42 | 62 | 47 |
| Property, plant and equipment | 135 | 139 | 138 |
| Right-of-use assets | 34 | 34 | 38 |
| Financial assets | 3 | 4 | 3 |
| Total non-current assets | 750 | 897 | 762 |
| Current assets | |||
| Inventories | 206 | 226 | 198 |
| Trade receivables | 93 | 105 | 78 |
| Current tax assets | 17 | 19 | 12 |
| Other current receivables | 10 | 12 | 10 |
| Prepaid expenses and accrued income | 38 | 45 | 37 |
| Cash and cash equivalents | 20 | 49 | 57 |
| Total current assets | 384 | 456 | 392 |
| TOTAL ASSETS | 1,134 | 1,353 | 1,154 |
| Equity | |||
| Share capital | 7 | 7 | 7 |
| Other contributed capital | 851 | 851 | 851 |
| Retained earnings, including profit/loss for the period | -282 | -146 | -275 |
| Total equity | 576 | 712 | 583 |
| Non-current liabilities | |||
| Deferred tax liabilities | 37 | 43 | 39 |
| Non-current liabilities to credit institutions | 1 | 182 | 152 |
| Non-current lease liabilities | 19 | 17 | 21 |
| Other non-current liabilities | 56 | 28 | 61 |
| Total non-current liabilities | 113 | 270 | 273 |
| Current liabilities | |||
| Current liabilities to credit institutions | 181 | 41 | 41 |
| Advances from customers | 8 | 5 | 5 |
| Trade payables | 59 | 70 | 50 |
| Current tax liabilities | 4 | 6 | 4 |
| Utilized bank overdraft facilities | 40 | 20 | 40 |
| Current lease liabilities | 16 | 16 | 17 |
| Other current liabilities | 42 | 107 | 46 |
| Accrued expenses and deferred income | 95 | 106 | 95 |
| Total current liabilities | 445 | 371 | 298 |
| Total liabilities | 558 | 641 | 571 |
| TOTAL EQUITY AND LIABILITIES | 1,134 | 1,353 | 1,154 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| SEK million | Share capital |
Other contributed capital |
Retained earnings, including profit for the period |
Total equity |
|---|---|---|---|---|
| Opening balance, Jan 1, 2024 | 7 | 851 | -141 | 717 |
| Comprehensive income for the period |
- | - | -5 | -5 |
| Transactions with shareholders | ||||
| New share issue | - | - | - | - |
| New share issue expenses | - | - | - | - |
| Closing balance, March 31, 2024 | 7 | 851 | -141 | 717 |
| SEK million | Share capital |
Other contributed capital |
Retained earnings, including profit for the period |
Total equity |
|---|---|---|---|---|
| Opening balance, Jan 1, 2024 | 7 | 851 | -275 | 583 |
| Comprehensive income for the period |
- | - | -7 | -7 |
| Transactions with shareholders | ||||
| New share issue | - | - | - | - |
| New share issue expenses | - | - | - | - |
| Closing balance, Dec 31, 2024 | 7 | 851 | -282 | 576 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| SEK million | Q1 2025 |
Q1 2024 |
R12 2025 |
Full year 2024 |
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Profit/loss before tax | -9 | -6 | -133 | -130 |
| of which interest received | - | - | - | 1 |
| of which interest paid | -3 | -5 | -13 | -15 |
| Adjustment for non-cash items | 14 | 12 | 179 | 177 |
| Tax paid | -5 | -9 | -7 | -11 |
| Cash flow from operating activities | ||||
| before changes in working capital | 0 | -3 | 39 | 36 |
| Cash flow from changes in working capital | ||||
| Change in inventories | -7 | 4 | 19 | 30 |
| Change in current receivables | -16 | -16 | 22 | 22 |
| Change in current liabilities | 1 | 14 | -56 | -43 |
| Cash flow from change in working capital | -22 | 2 | -15 | 9 |
| Cash flow from operating activities | -22 | -1 | 24 | 45 |
| Cash flow from investing activities | ||||
| Investments in property, plant and equipment | -1 | -2 | -13 | -14 |
| Investments in intangible assets | - | - | -2 | -2 |
| Cash flow from investing activities | -1 | -2 | -15 | -16 |
| Cash flow from financing activities | ||||
| New share issue | - | - | - | - |
| New share issue expenses | - | - | - | - |
| Proceeds from borrowings | - | - | - | - |
| Repayment of borrowings | -10 | -10 | -41 | -41 |
| Change in bank overdraft facilities | - | 20 | 20 | 40 |
| Repayment of lease liabilities | -4 | -4 | -17 | -17 |
| Cash flow from financing activities | -14 | 6 | -38 | -18 |
| Total cash flow | -37 | 3 | -29 | 11 |
| Cash and cash equivalents at start of period | 57 | 46 | 49 | 46 |
| Translation differences | - | - | - | - |
| Cash and cash equivalents at end of period | 20 | 49 | 20 | 57 |
CONDENSED PARENT COMPANY INCOME STATEMENT
| SEK million | Q1 2025 |
Q1 2024 |
R12 2025 |
Full year 2024 |
|---|---|---|---|---|
| Net sales | - | - | - | - |
| Other income | 5 | 4 | 19 | 18 |
| Total operating income | 5 | 4 | 19 | 18 |
| Other external expenses | -2 | -2 | -9 | -9 |
| Personnel costs | -3 | -3 | -11 | -11 |
| Depreciation and amortization | - | - | - | - |
| Total expenses | -5 | -5 | -20 | -20 |
| Operating profit/loss | 0 | -1 | -1 | -2 |
| Finance income | 0 | 1 | 1 | 2 |
| Finance costs | -4 | -5 | -57 | -58 |
| Profit/loss before tax | -4 | -5 | -57 | -58 |
| Group contributions | - | - | 6 | 6 |
| Income tax | - | - | -2 | -2 |
| Profit/loss for the period | -4 | -5 | -53 | -54 |
CONDENSED PARENT COMPANY BALANCE SHEET
| SEK million | Mar 31 2025 |
Mar 31 2024 |
Dec 31 2024 |
|---|---|---|---|
| Property, plant and equipment | 1 | 1 | 0 |
| Receivables from Group companies | 953 | 1,000 | 953 |
| Financial assets | 22 | 23 | 22 |
| Total non-current assets | 976 | 1,024 | 976 |
| Receivables from Group companies | 62 | 70 | 62 |
| Other current receivables | 2 | - | 1 |
| Prepaid expenses and accrued income | 3 | 1 | 1 |
| Cash and cash equivalents | 18 | 47 | 54 |
| Total current assets | 85 | 118 | 118 |
| TOTAL ASSETS | 1,061 | 1,142 | 1,094 |
| Share capital | 7 | 7 | 7 |
| Other contributed capital | 883 | 883 | 883 |
| Retained earnings, including profit/loss for the period | -293 | -240 | -289 |
| Total equity | 597 | 650 | 601 |
| Non-current liabilities to credit institutions | 0 | 180 | 150 |
| Other non-current liabilities | 0 | 7 | 0 |
| Total non-current liabilities | 0 | 187 | 150 |
| Current liabilities to credit institutions | 180 | 40 | 40 |
| Utilized bank overdraft facilities | 40 | 20 | 40 |
| Trade payables | 1 | 2 | 1 |
| Liabilities to Group companies | 239 | 226 | 258 |
| Other current liabilities | 1 | 11 | 1 |
| Accrued expenses and deferred income | 3 | 6 | 3 |
| Total current liabilities | 464 | 305 | 343 |
| Total liabilities | 464 | 492 | 493 |
| TOTAL EQUITY AND LIABILITIES | 1,061 | 1,142 | 1,094 |
NOTES
Note 1. Accounting policies
Seafire AB (publ) applies International Financial Reporting Standards (IFRS) as adopted by the European Union. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act. Information in accordance with IAS 34.16A is disclosed both in the financial statements and their associated notes and elsewhere in the interim report. The accounting policies are consistent with the policies that were applied in the previous financial year. For more information on these, see Note G1 in the 2024 Consolidated Annual Report. The interim report should be read together with the 2024 Annual Report. Preparation of financial statements in accordance with IFRS requires Group management to make accounting judgments, estimates and assumptions that affect the application of the accounting policies and the carrying amounts of assets, liabilities, income and expenses. The actual outcome may differ from these estimates and judgments. For information on the Company's critical judgments and sources of uncertainty, see the Group's 2024 Annual Report.
Note 2. Risks and uncertainties
For a description of the Group's material risks and uncertainties, see the detailed statement in the 2024 Annual Report. No material new or changed risks or uncertainties have been identified since the publication of the 2024 Annual Report. The Parent Company's risks are covered by the description presented for the Group. The effects of the war in Ukraine and the conflict in the Middle East are such that the Company is unable to make reasonable advance assessments of the effects on the Company's operations and financial performance. The Company's management and Board of Directors are monitoring developments in the ongoing trade and tariff conflict between the United States and the rest of the world. Seafire has very limited exposure to the American market but may be indirectly affected by changing consumer behaviour. Higher inflation and higher prices of input goods will impact demand for goods and services provided by Seafire's subsidiaries.
Note 3. Revenue from contracts with customers
| Net sales by geographical area | Full | |||
|---|---|---|---|---|
| SEK million | Q1 2025 |
Q1 2024 |
R12 2025 |
year 2024 |
| Sweden | 144 | 156 | 648 | 660 |
| Nordic region (excl. Sweden) | 37 | 33 | 147 | 143 |
| Europe (excl. Nordic region and Sweden) | 26 | 29 | 95 | 98 |
| World (excl. Europe, Nordic region and Sweden) | 0 | 1 | 3 | 4 |
| Total net sales | 207 | 219 | 893 | 905 |
| Amounts recognized as revenue | Full | |||
| Q1 | Q1 | R12 | year | |
| SEK million | 2025 | 2024 | 2025 | 2024 |
| Revenue from service contracts (revenue over time) | 13 | 13 | 50 | 50 |
| Revenue recognized at a point in time | 194 | 206 | 843 | 855 |
| Total | 207 | 219 | 893 | 905 |
Note 4. Segment reporting
Seafire's operations are divided into two segments: Industrial components and Products. Group management has determined these segments based on the information considered by the chief operating decision-maker, i.e. the CEO. The operations are divided on the basis of a sales and product content perspective. During the reporting period, no customer accounted for more than ten (10) percent of the Group's net sales.
The Industrial components segment comprises Bara Mineraler, Borö-Pannan, DOFAB, Färg-In, Kenpo Sandwich, Pexymek, Thor Ahlgren and Åkerstedts Verkstad. The Products segment comprises Ludafarm, Nordbutiker, OPO and SolidEngineer. For more information about these subsidiaries, visit www.seafireab.com. In addition to the business segments, the tables also include central costs and Group-wide adjustments. Group adjustments are the Group's IFRS-related accounting adjustments, e.g. attributable to leases or goodwill impairment. Central costs refers to the holding company with Group-wide costs (financing costs, insurance costs, etc.). Liabilities and goodwill are not included in segment reporting.
| Industrial components |
Products | Central costs | Group adjustments |
Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | ||
| SEK | |||||||||||
| million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| Net sales | 137 | 144 | 70 | 73 | - | - | 0 | 1 | 207 | 219 | |
| Other | 2 | 3 | 1 | - | - | - | - | - | 3 | 3 | |
| income Total |
139 | 147 | 71 | 73 | - | - | 0 | 1 | 210 | 222 | |
| income Gross |
63 | 66 | 36 | 34 | - | - | 0 | 1 | 99 | 101 | |
| profit Gross |
46% | 46% | 51% | 47% | - | - | - | 45% | 48% | 46% | |
| margin Operating |
-53 | -55 | -30 | -30 | -5 | -5 | - | - | -88 | -90 | |
| expenses % of net |
39% | 38% | 43% | 42% | - | - | - | - | 43% | 41% | |
| sales EBITA |
6 | 7 | 4 | 2 | -5 | -5 | 0 | 1 | 6 | 5 | |
| EBITA | 5% | 5% | 6% | 3% | - | - | - | 37% | 3% | 2% | |
| margin Amortization and impairment of intangible assets |
-6 | -6 | |||||||||
| Operating profit (EBIT) | 0 | -1 | |||||||||
| Net financial items | -9 | -5 | |||||||||
| Profit/loss before tax | -9 | -6 | |||||||||
| Tax on profit | 2 | 1 | |||||||||
| Profit/loss for the period, continuing operations -7 |
-5 |
Note 5. Fair value of financial instruments
| 1 | 2 | 3 | ||||||
|---|---|---|---|---|---|---|---|---|
| Mar 31 | Mar 31 | Mar 31 | Mar 31 | Mar 31 | Mar 31 | Mar 31 | Mar 31 | |
| SEK million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
| Assets | ||||||||
| Currency derivatives | - | - | - | - | - | - | - | - |
| Liabilities | ||||||||
| Currency derivatives | 1 | - | - | - | 1 | - | - | - |
| Contingent consideration | - | 12 | - | - | - | - | - | 12 |
Classification according to valuation hierarchy
Financial liabilities at fair value by valuation hierarchy level
The fair value and carrying amount are recognized in the balance sheet in accordance with the table above. For listed securities, the fair value is determined based on the asset's quoted price in an active market, level 1. The fair value of foreign exchange contracts and embedded derivatives is determined based on observable market inputs, level 2. For contingent consideration, a cash flow-based measurement is carried out which is not based on observable market inputs, level 3.
Note 6. Contingent consideration
Contingent consideration is variable, based on the companies' earnings growth, and is determined based on future earnings growth for each company, based on management's best assessment and forecasts. Contingent consideration is recognized at fair value. Reversed contingent consideration is recognized on the line Other income, and contingent consideration remeasurement due to changed discounting is recognized on the line Finance costs.
| Jan-Mar | Jan-Mar | Jan–Dec | |
|---|---|---|---|
| SEK million | 2025 | 2024 | 2024 |
| Opening balance | - | 12 | 12 |
| Acquisitions during the year | - | - | - |
| Reversed in income statement | - | - | -7 |
| Consideration paid | - | - | -5 |
| Interest expenses | - | - | - |
| Closing balance | - | 12 | - |
Note 7. Alternative performance measures
In this interim report Seafire presents certain financial measures that are not defined under IFRS. These are referred to as alternative performance measures. The Company believes that these APMs provide valuable additional information for stakeholders and investors, as they offer a different perspective on financial performance and financial position.
The table below contains definitions of Seafire's performance measures. The calculation is shown separately below.
| Non-IFRS measures | Description | Purpose |
|---|---|---|
| Organic growth, % | Increase in net sales in the period adjusted for acquisitions and divestments/Net sales in the comparative period. |
This performance measure is used in connection with analyses of underlying growth in revenue driven by comparable entities |
| between different periods. | ||
| Acquired growth, % | Increase in net sales from acquisitions in the period/Net sales in the comparative period. |
This performance measure is used to monitor the proportion of the increase in the Company's sales that is generated through acquisitions. |
| Gross profit | Net sales less cost of goods/services sold. | Gross profit is used to analyze the |
| manufacturing and sales process and cost efficiency. |
||
| Gross margin | Gross profit expressed as a percentage of net sales in the period. |
The gross margin is used to monitor the gross contribution after direct expenses for goods and services. |
| Operating expenses | Personnel costs and other external | Used to summarize indirect cost base |
| expenses. | development relative to net sales. | |
| EBITDA | Operating profit before depreciation, amortization and impairment. |
EBITDA is a measure that is used to monitor operational performance and facilitates comparisons of profitability between different companies and sectors. |
| Adjusted EBITDA | Operating profit before depreciation, amortization and impairment after the elimination of items affecting comparability. |
Items affecting comparability are adjusted to facilitate a fair comparison between two comparable time periods and to show the underlying trend in operational performance excluding non-recurring items. |
| Adjusted EBITDA pro forma R12 |
Operating profit before depreciation, amortization and impairment after the elimination of items affecting comparability for the previous 12 months, including the outcome of completed acquisitions. |
This performance measure is determined in relation to net debt in order to monitor developments in the Company's level of indebtedness. |
| EBITA | Operating profit before amortization and impairment attributable to acquired surplus values. |
Together with EBITDA, EBITA provides a picture of the profit that is generated by operating activities. |
| Adjusted EBITA | Adjusted operating profit before amortization and impairment of intangible assets and acquired surplus values, after the elimination of items affecting comparability. |
Items affecting comparability are adjusted to facilitate a fair comparison between two comparable time periods and to show the underlying trend in operational performance excluding non-recurring items. |
| Adjusted EBITA margin |
EBITA expressed as a percentage of net sales during the period. |
The EBITA margin is used to monitor the profitability of the business. |
| Items affecting | Transaction-related costs, restructuring | Items affecting comparability represent |
| comparability | costs, purchase consideration | income and expenses that are not attributable |
| remeasurement, capital gains on the sale of | to the underlying performance of | |
| businesses and non-current assets, as well | the business. | |
| as other income and expenses | ||
| considered to be non-recurring in nature. | ||
| Net debt | Interest-bearing liabilities less interest bearing receivables less cash and cash equivalents. |
This performance measure is an indicator of the Company's level of indebtedness and is used by the Company to assess the scope to fulfill financial obligations. |
| Organic growth | Increase in net sales in the period adjusted for acquisitions and divestments divided by net sales in the comparative period. |
This performance measure is used in connection with analyses of underlying growth in revenue driven by comparable entities between different periods. |
|---|---|---|
| Pro forma | Outcome for the period adjusted to include the outcome of acquisitions for the previous 12 months. |
Used to facilitate comparisons between full year periods by adjusting for the full-year effect of completed acquisitions. |
Calculations of the alternative performance measures are presented in the tables shown below.
Calculation of organic growth
| Full | ||||
|---|---|---|---|---|
| Q1 | Q1 | R12 | year | |
| Percentage points | 2025 | 2024 | 2025 | 2024 |
| Organic growth | -5% | -17% | -8% | -10% |
| Acquired growth | - | 4% | - | 1% |
| Recognized growth | -5% | -13% | -8% | -10% |
| Full | ||||
|---|---|---|---|---|
| Q1 | Q1 | R12 | year | |
| SEK million | 2025 | 2024 | 2025 | 2024 |
| Net sales, base | 219 | 253 | 966 | 1,000 |
| Net sales, income growth | -12 | -42 | -73 | -104 |
| Total organic growth | 207 | -17% | 893 | -10% |
EBITA and adjusted EBITA
| Full | |||
|---|---|---|---|
| Q1 | Q1 | R12 | year |
| 2025 | 2024 | 2025 | 2024 |
| 0 | -1 | -104 | -105 |
| 6 | 6 | 147 | 147 |
| 6 | 5 | 43 | 42 |
| - | 1 | -1 | 0 |
| 6 | 6 | 42 | 42 |
EBITDA and adjusted EBITDA
| Full | ||||
|---|---|---|---|---|
| Q1 | Q1 | R12 | year | |
| SEK million | 2025 | 2024 | 2025 | 2024 |
| EBIT | 0 | -1 | -104 | -105 |
| Reversal of depreciation, amortization and impairment of | ||||
| property, plant and equipment and intangible | 13 | 13 | 175 | 176 |
| assets | ||||
| EBITDA | 13 | 12 | 71 | 71 |
| Reversal of items affecting comparability | - | 1 | -1 | 0 |
| Adjusted EBITDA | 13 | 13 | 70 | 71 |
Items affecting comparability
| Full | ||||
|---|---|---|---|---|
| Q1 | Q1 | R12 | year | |
| SEK million | 2025 | 2024 | 2025 | 2024 |
| Disposal of machinery and equipment | - | - | -3 | -3 |
| Impairment due to inventory obsolescence | - | - | -1 | -1 |
| Contingent consideration remeasurement | - | - | 7 | 7 |
| Restructuring costs | - | -1 | -2 | -3 |
| Items affecting comparability | - | -1 | 1 | 0 |
Adjusted EBITDA pro forma R12
| Full | |||
|---|---|---|---|
| Q1 | Q1 | year | |
| SEK million | 2025 | 2024 | 2024 |
| EBITDA R12 | 72 | 99 | 71 |
| Items affecting comparability | -1 | -17 | 0 |
| Adjusted EBITDA R12 | 71 | 82 | 71 |
| Acquired companies | - | - | - |
| Adjusted EBITDA pro forma R12 | 71 | 82 | 71 |
Net debt, Net debt/Adjusted EBITDA pro forma R12
| Full | |||
|---|---|---|---|
| Q1 | Q1 | year | |
| SEK million | 2025 | 2024 | 2024 |
| Interest-bearing liabilities | 222 | 243 | 233 |
| Lease liabilities | 35 | 33 | 39 |
| Contingent consideration due within 12 months | - | 5 | - |
| Less: cash and cash equivalents | -20 | -49 | -57 |
| Net debt | 237 | 232 | 215 |
| Adjusted EBITDA R12 | 71 | 82 | 71 |
| Net debt/Adjusted EBITDA pro forma R12, times | 3.3 | 2.8 | 3.0 |
Adjusted net debt including deferral from the Swedish Tax Agency and all contingent consideration, adjusted net debt/adjusted EBITDA pro forma R12
| Full | |||
|---|---|---|---|
| Q1 | Q1 | year | |
| SEK million | 2025 | 2024 | 2024 |
| Net debt | 237 | 232 | 215 |
| Outstanding deferral from the Swedish Tax Agency and | |||
| contingent consideration due for payment after 12 months | 71 | 98 | 85 |
| Adjusted net debt | 308 | 330 | 300 |
| Adjusted EBITDA R12 | 71 | 82 | 71 |
| Adjusted net debt/Adjusted EBITDA pro forma R12, times | 4.3 | 4.0 | 4.2 |